Compass Group PLC's (LON:CPG) True Value May Be 20% Lower Than Its Current Share Price

Written by Emily J. Thompson, Senior Investment Analyst

Source: Yahoo Finance

Updated: Dec 14 2025

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Source: Yahoo Finance

Valuation Overview: Compass Group's estimated fair value is UK£18.55, indicating it is currently 25% overvalued at a share price of UK£23.24, with an analyst price target of US$28.15, which is 52% above the fair value estimate.
Discounted Cash Flow (DCF) Model: The DCF model estimates the intrinsic value by discounting future cash flows, resulting in a total equity value of US$42 billion, though this valuation is sensitive to assumptions about growth rates and discount rates.
Strengths and Weaknesses: The company shows strengths in earnings growth and debt coverage, but its earnings growth is below the 5-year average, and its dividend yield is low compared to top competitors in the hospitality market.
Investment Considerations: Investors should consider risks, management insights, and alternative high-quality stocks, as the DCF model is not a perfect tool and should be complemented with other analyses before making investment decisions.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.